7 Stocks to Start Building Your Warrant List
In just a little while, I’ll be heading to the grocery store.
Then tomorrow late afternoon, or early evening, I’ll get a list from my wife, and…back to the grocery store.
It’s a habit we formed living in New York. Our apartment in Brooklyn Heights was too small to keep a lot of groceries.
So, every day I’d head to Key Food on Montague to get our dinner. The aisles were so small if anyone actually had a push cart, which was also tiny, you’d have to turn sideways to pass them.
We brought the habit with us when we moved back to Maryland, and it has persisted for almost 20 years.
We actually tried to break it a few times by stocking up for the week. But, inevitably one member of the family would have some commitment that blew up our dining plans and food would go bad.
So, back to the daily grocery run.
Doing this for so long, we now have a standard daily rythm. We talk for a few minutes at some point in the day about what dinner will be. And then around 3 or 4 a text shows up with my list of things to buy.
That list is key. If it’s not on the list, it doesn’t get bought.
If we’re having steak, hash browns and green beans, but my wife leaves steak off my list…well, that usually means a second trip to the store for me.
Without the list, we wouldn’t eat.
And, like my grocery list is invaluable to eating, my warrant list is super important to my trading. If it’s not on my list, I don’t know it’s there, and I can’t make money off of it.
As I’ve said before, it’s always one of the first questions I get from anyone interested in warrants…is there a list?
By knowing warrants exist and that you can trade them profitably, you’re already ahead of the game. Put together your warrant list, so you’ll have a list of warrants to watch and trade, and you’ll be unstoppable.
So, in the spirit of Listgiving (yes, that notable end of November tradition) here are 7 warrants you should add to your list of warrants.
The Starter Warrant List… Something for Everyone
1. Hostess Brands (TWNK, TWNKW)
Since it’s near the holiday of eating, let’s kick this off with some sweet eats. Did you know Hostess, venerable maker of the Twinkie, went bankrupt a few years ago?
No. Well, you can relax. They’re back. And, they have warrants trading on their stock.
I don’t think I need to tell you what the company does…we all know they make mind bending sugary goodness.
The warrants have traded between $1 and $2 in 2019, and sit right in the middle of that range as I write this.
2. Lindblad Expeditions Holdings (LIND, LINDW)
So, you’re not into sugary goodness, adventure is more your style. Look no further than Lindblad Expeditions.
The cruise and travel company has teamed up with National Geographic to offer some super cool destination travel options. Think Antarctica, not the Bahamas. (Nothing against the Bahamas mind you.)
Lindblad targets a higher end market than a cattle car cruise ship, and did quite well in 2019. The stock moved from around $13 to $19, and then faltered a little in the last few months.
If you’re thinking of getting into this one on the pullback, don’t neglect to check out the warrants. They offer more leverage for less capital (as most warrants do).
3. Akerna Corp. (KERN, KERNW)
If you’re into the whole cannabis legalization scene, you’ll want to keep an eye on Akerna. Don’t let the somewhat crazy looking chart scare you. (It was a great way to make money earlier this year.)
If you believe legalization of cannabis is a given, then this one will return to form right along with that legislation.
Akerna is a little different take on cannabis than your usual stock, which most often is a grower, distributor, etc.
Akerna is a software company that aims to be the go to back office for the cannabis industry. Let all the other growers fight it out on price, while Akerna runs the old picks and shovels supplier play.
Oh, and did I mention it has warrants? They’re out of the money right now, but once legalization is in sight, this is one I’d keep a light on. (Maybe even a Bic light(er), couldn’t resist.)
4. Repay Holdings (RPAY, RPAYW)
You can Venmo me. I take Paypal. We use Stripe. Apple Pay works here.
If I have to sign up for one more payment processor, I’m going to…
But, hang on, what’s this? A warrant that trades on a stock in the hot payment processor sector.
Yep, that’s Repay. This Atlanta based payment processor touts the fact that it is currently in over 10,000 merchants. And, it’s attacking not only B2C but B2B as well.
The warrants have seen some life recently. Definitely one for the warrant list.
5. Verra Mobility (VRRM, VRRMW)
So, I don’t know about you, but here in the DMV (DC, MD, VA) speed and red light cameras are popping up like pimples on a 15 year old.
You can’t drive to the grocery store (did I tell you I do that every day?) without seeing a new “Photo Enforced” on top of a speed limit sign.
Thanks Verra Mobility!
These guys are way into safety, and making sure technology is used to enforce the rules…and bring a little extra bank into the local coffers. Think their products are selling well?
If you do, you may want to check out their warrants. Maybe you can make back the money you spent on speeding tickets the past year.
6. American International Group (AIG, AIGWS)
Yep, that AIG. The massive insurance company AIG.
Most people think warrants only trade on low priced stocks. Not true my friend.
Some of the best trading (very liquid, can trade options against them, can make a lot of money from them) warrants out there can be found on names you wouldn’t expect.
At one time or another Citigroup, Ford, GM, and Bank of America all had warrants trading on them. It pays to pay attention…build that warrant list.
7. OneSpaworld Holdings (OSW, OSWWF)
Finally, let’s end this list as all internet lists should end, with a relaxing massage.
OneSpaworld has warrants, AND provides spa services on cruise ships. A combo made in heaven.
The high end luxury market is where it’s at these days if you’re selling services.
Just look at the recent listing of Virgin Galactic (SPCE, SPCEW) and its space tourism offering listing on the NYSE. (Did you see that. That was your bonus warrant I snuck in there as your reward for reading to the end. Gold star for you!!)
OneSpaworld has been expanding its deals with major luxury cruise lines, and has moved into the land based spa realm as well.
This is definitely a warrant to put on your list and keep tabs on.
So, there you have it. Seven (eight if you were paying attention) warrants to begin your warrant trading journey.
If you’re serious about making money in this warrant thing, not all of you are, and that’s cool, more mullah for me…